What happens if my account does not have sufficient funds to cover a bill payment item? | First Internet Bank (2024)

FAQs

What happens if my account does not have sufficient funds to cover a bill payment item? | First Internet Bank? ›

If your account does not contain sufficient funds to cover the payment, any overdraft protection you may have on the account will be used. If you still do not have enough funds to cover the payment(s), you will be charged a fee for insufficient funds (NSF).

Overdraft Fees. Non-sufficient funds and overdrafts are two distinct bank transactions. Both relate to insufficient funds and can trigger fees. Banks charge NSF fees when they return presented payments without payment, like a check, and overdraft fees when they accept and pay the checks that overdraw checking accounts.

Nonsufficient funds: If you don't have overdraft coverage or protection, your bank may decline the transaction due to nonsufficient funds (NSF) or “insufficient funds.” You will owe an “NSF fee” in most cases, and often this fee is the same amount the bank charges for an overdraft.

Not having sufficient funds to complete an automatic payment can lead to overdraft charges from the bank and a return payment fee from the card issuer. If it's not caught in time, a late fee will still be charged and interest charges will begin to accrue.

Keep in mind you might have to pay an overdraft fee or overdraft transfer fee depending on where you bank. If your account balance has been overdrawn for less than 24 hours, you might be able to get an overdraft fee refund even if you don't have overdraft protection.

Insufficient funds can lead to insufficient fund penalty/fees if the bank refuses the payment or overdraft fees if the bank accepts the transaction and overdraws the account. Insufficient funds may result in legal issues, including criminal charges.

If your financial institution doesn't cover the check, it bounces and is returned to the depositor's bank. You'll likely be charged a penalty for the rejected check; this is a nonsufficient funds fee, also known as an NSF or returned item fee. This typically costs about the same as an overdraft fee.

You might not have enough money in your checking account. That means your debit card will be “declined.” You will not be able to buy things.

Insufficient Funds: Usually, payments fail simply because the customer does not have the required funds available in their account to cover the transaction – or because they have exceeded their credit limit. In either case, their bank will typically reject the payment.

You have 90 days from the withdrawal date to report an incorrect or unauthorized pre-authorized debit to your financial institution. If you don't have enough funds in your account to cover a withdrawal, the biller can try the same debit one more time.

Can you still use a debit card with no money? ›

If you don't have enough funds in your account, the transaction will be declined. When you choose to run your debit card as credit, you sign your name for the transaction instead of entering your PIN.

If you have not opted in to ATM and debit card overdraft, debit card purchases and ATM withdrawals will generally be declined if your account doesn't have enough funds at the time you attempt the transaction.

If your checking account is not enrolled in Debit Card Overdraft Service and you don't have enough available money in your checking account or in accounts linked for Overdraft Protection, ATM and everyday (one-time) debit card transactions will be declined at the time of the transaction.

Charges - If you don't have enough money to cover your Direct Debits, you could be charged by your bank or go into your overdraft. Before this happens, you have until 2:30 pm to pay the money into your account to avoid charges - this is called the 'retry process'.

If you miss too many payments in a row, your credit card company may take you to court to recover the past-due amount owed on the account. If they obtain a judgment, they may be able to garnish your wages or the money in your bank account — or could even put a lien on your home or other properties.

Contact your lenders.

Don't let pride get in the way of communicating with your lenders. Often, they'll understand and try to work with you. Ask about a payment plan and let them know what you're able to pay (more on this in a second).